Appendix B: Payments to the States
This appendix provides accrual estimates of Commonwealth payments to the States and local governments. This includes Commonwealth advances (loans) to the States, including new advances, interest on advances and repayments of advances. Most of these advances were funded from borrowings made on behalf of the States under previous Australian Loan Council arrangements.
Each table presents estimated payments to the States for the period 2007‑08 to 2011‑12 as follows:
B.1 — general revenue assistance;
B.2 — health;
B.3 — education;
B.4 — community services;
B.5 — housing;
B.6 — infrastructure;
B.7 — environment;
B.8 — other purposes;
B.9 — contingent liabilities;
B.10 — local government; and
B.11 — other financial flows.
The new framework for federal financial relations, which commences 1 January 2009, is reflected in the tables in this appendix. For example, Table B.4 presents the existing social security and welfare payments for specific purposes for 2007‑08, and the transition of these terminating payments into the new national disabilities services SPP or National Partnership payments in 2008‑09.
Owing to the reductions in conditions on payments for specific purposes under the new financial framework, payments from 2008‑09 will no longer be allocated as recurrent or capital. All payments made from 1 January 2009 are recurrent in nature. To clarify this transition from previous budget papers, capital payments in 2007‑08 will sometimes indicate 'capital' in their title. Some payments may continue to be provided to be spent for capital purposes by the States. From 2009, these would most likely be National Partnership payments (for example, AusLink payments). However, consistent with Australian Bureau of Statistics Government Finance Statistics treatment, even these payments are considered to be recurrent in nature at the Commonwealth level.
In a break from practice since the 2005‑06 Budget, detailed estimates for all forward years have been provided, including in respect of notionally lapsing agreements where a new agreement has not yet been agreed. Where possible, the estimates include the state allocations for each payment over the forward estimates. In a small number of cases, where allocations have not been determined, no state allocation is shown but an equal per capita share is included in each State's total payments.
The publication of an estimate for a State in no way commits the Commonwealth to fund a particular program, or indicates that a State has agreed to participate in the program.
Table B.1: Estimated general revenue assistance payments to the States, by year and State

Table B.1: Estimated general revenue assistance payments to the States, by year and State (continued)

- In 2007‑08, royalties, ACT municipal services and some compensation payments are being paid under existing arrangements as payments for specific purposes and not as general revenue assistance. As the reclassification to general revenue assistance applies from 1 January 2009, estimates are for half their annual amounts. The other half is reported in Table B.8.
Table B.2: Estimated payments to support state health services, by year and State

Table B.2: Estimated payments to support state health services, by year and State (continued)

Table B.2: Estimated payments to support state health services, by year and State (continued)

Table B.2: Estimated payments to support state health services, by year and State (continued)

Table B.2: Estimated payments to support state health services, by year and State (continued)

- Total state allocations are yet to be agreed. Unallocated amounts are reflected in state totals indicatively on an equal per capita basis.
- Payments commenced in 2006‑07 and were previously included and reported in health care grants.
- Includes funding for the Public Health Outcome Funding Agreements with the States.
- There is no basis on which to estimate state allocations. In this case, the total is notionally allocated on an equal per capita basis.
- The treatment of this payment under the new framework for federal financial relations is yet to be decided.
Table B.3: Estimated payments to support state education services, by year and State

Table B.3: Estimated payments to support state education services, by year and State (continued)

Table B.3: Estimated payments to support state education services, by year and State (continued)

Table B.3: Estimated payments to support state education services, by year and State (continued)

Table B.3: Estimated payments to support state education services, by year and State (continued)

* Items so marked are classified as payments through the States.
- Total expenditure on Australian Technical Colleges is estimated at $459.2 million over the five years to 2011‑12. Most of this funding is classified as Australian Government own‑purpose expenses. Payments to the States for this program are included under non‑government schools programs to 2008‑09 and National early childhood development and schools agreement from 2008‑09.
- Capital payments for government and non‑government schools have been bundled with the National early childhood development and schools agreement, however, the precise treatment of this payment under the new framework for federal financial relations is yet to be decided.
- There is no basis on which to estimate state allocations. In this case, the total is notionally allocated on an equal per capita basis.
Table B.4: Estimated payments to support state community services, by year and State

Table B.4: Estimated payments to support state community services, by year and State (continued)

Table B.4: Estimated payments to support state community services, by year and State

- Funding for the purpose of assisting parent carers aged 65 years or more to obtain supported accommodation in the community for their adult children with a disability has been transferred to the Commonwealth State Territory Disability Agreement (CSTDA) from the Australian Government's Disability Assistance Package from 2008‑09 onwards, consistent with the States' responsibilities under the CSTDA. The funds transferred are $124.5 million in 2008‑09; $154.4 million in 2009‑10; $252.6 million in 2010‑11; and $369.7 million in 2011‑12. Also, the Australian Government is providing an additional $100 million in 2007‑08 to assist the States to provide supported accommodation in the community for people with a disability.
- There is no basis on which to estimate state allocations. In this case, the total is notionally allocated on an equal per capita basis.
- The treatment of this payment under the new framework for federal financial relations is yet to be decided.
- Prior to 2008‑09, payments for home and community care services for veterans under the Veterans' Home Care program were classified as Australian Government own‑purpose expenses.
Table B.5: Estimated payments to support state housing services, by year and State

Table B.5: Estimated payments to support state housing services, by year and State (continued)

Table B.5: Estimated payments to support state housing services, by year and State (continued)

* Items so marked are classified as payments through the States.
- Prior to 2008‑09, all payments under the Community Housing and Infrastructure Program were classified as Australian Government own‑purpose expenses. Provision has been made for continued funding in 2011‑12. However, the extension of the relevant agreements has not been negotiated and therefore the amounts payable under the agreements cannot be specifically identified.
- The Australian Government is providing $150 million over five years to 2012‑13 to assist the States provide up to 600 homes across Australia for families and individuals who are homeless.
- The treatment of this payment under the new framework for federal financial relations is yet to be decided.
Table B.6: Estimated payments to support state infrastructure services, by year and State

Table B.6: Estimated payments to support state infrastructure services, by year and State (continued)

Table B.6: Estimated payments to support state infrastructure services, by year and State (continued)

- State allocations for some payments are yet to be determined, but are reflected in State totals indicatively on an equal per capita basis.
- Payments show total AusLink funding, including funding that will be paid to local government.
Table B.7: Estimated payments to support state environmental services, by year and State

Table B.7: Estimated payments to support state environmental services, by year and State (continued)

Table B.7: Estimated payments to support state environmental services, by year and State (continued)

* Items so marked are classified as payments through the States.
- From 2008‑09, the National Landcare Program will be delivered directly to industry and community groups under the Australian Government's Caring for our Country program.
- There is no basis on which to estimate state allocations. In this case, the total is notionally allocated on an equal per capita basis.
- Caring for our Country — Natural Heritage Trust replaces Natural Heritage Trust (Bushcare, Coastcare, Landcare and Rivercare) and the National Action Plan for Salinity and Water Quality from 2008‑09 onwards.
Table B.8: Estimated payments to support other state services, by year and State

Table B.8: Estimated payments to support other state services, by year and State (continued)

Table B.8: Estimated payments to support other state services, by year and State (continued)

Table B.8: Estimated payments to support other state services, by year and State (continued)

Table B.8: Estimated payments to support other state services, by year and State (continued)

* Items so marked are classified as payments through the States.
- Prior to 2008‑09, payments for legal aid to New South Wales, Victoria and Queensland were classified as Australian Government own‑purpose expenses.
- The treatment of this payment under the new framework for federal financial relations is yet to be decided.
Table B.9: Estimated contingent payments to the States, by year and State

Table B.9: Estimated contingent payments to the States, by year and State (continued)

Table B.10: Estimated payments to support local government, by year and State(a)

Table B.10: Estimated payments to support local government, by year and State (continued)

Table B.10: Estimated payments to support local government, by year and State (continued)

* Items so marked are classified as payments through the States.
- The treatment of local government payments under the new framework is yet to be decided.
- Payments in 2009‑10 may not represent total funding, as not all funding has been allocated. Payments in 2010‑11 and 2011‑12 are not quantifiable as local government AusLink funding is not yet agreed. Total AusLink funding is reported in Appendix Table B.6.
Table B.11: Other financial flows — estimated advances, repayment of advances and interest payments, by year and State

Table B.11: Other financial flows — estimated advances, repayment of advances and interest payments, by year and State (continued)

Table B.11: Other financial flows — estimated advances, repayment of advances and interest payments, by year and State (continued)

Table B.11: Other financial flows — estimated advances, repayment of advances and interest payments, by year and State (continued)

Table B.11: Other financial flows — estimated advances, repayment of advances and interest payments, by year and State (continued)

Table B.11: Other financial flows — estimated advances, repayment of advances and interest payments, by year and State (continued)

Table B.11: Other financial flows — estimated advances, repayment of advances and interest payments, by year and State (continued)

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